3M Healthcare grows as parent tops Q2 forecasts, narrows earnings guidance

3M (NYSE:MMM) reported second-quarter sales and operating income growth today for its healthcare business and overall results that beat the consensus forecast, but pared the top end of its earnings outlook for the rest of the year.

The St. Paul, Minn.-based industrial conglomerate posted operating income growth of 6.6% to $435 million on sales growth of 4.9% to $1.52 billion for 3M Healthcare for the three months ended June 30. The top-line growth was fueled by gains in food safety, medical solutions and health information systems, offset by declines for its drug-delivery business, 3M said.

Overall profits were $1.86 million, or $3.07 per share, on sales of $8.39 billion, for bottom-line growth of 17.3% on sales growth of 7.4% compared with Q2 2017. Adjusted to exclude one-time items, earnings per share were $2.59, a penny ahead of Wall Street, where analysts were looking for sales of $8.37 billion.

“3M had a strong quarter, including organic growth of 6 percent that was broad-based across all business groups and geographic areas,” CEO Mike Roman said in prepared remarks. “Our team delivered record sales and a double-digit increase in earnings per share, while keeping our commitment to investing in our business and returning cash to shareholders.”

The company said it now expects to report adjusted EPS of $10.20 to $10.45, compared with prior guidance of $10.20 to $10.55, and stood fast on its sales outlook for organic constant-currency growth of 3% to 4%.

MMM shares ticked up in pre-market trading, rising 0.8% to $200.50 apiece.

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